Photoshop Elements: Can't move/size PNGs

macrumors newbie

So I used Photoshop Elements on Win for a long time and got pretty good at it. I thought, hey, Mac can't be that much different. And it's not. Except that now, when I go to do a scrapbook page, I open a new file, put down my background....and I start to drag my elements onto the page (flowers, frames, whatever) However, when I drag the PNG element to the layout it automatically tells me it needs to be simplifed. This means, I can't move it, size it, twist it...nothing. It just lands where it lands. It's a new layer, not on the background layer.

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